Chhattisgarh Government inked pact with central PSUs for railway project

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Who: Chhattisgarh Government
What: Inked pact with central PSUs
When: 20 January 2016
Why: For railway project

The Chhattisgarh Government on 20 January 2016 signed a share-holding agreement with a few central government-run corporations for the second phase of Jagdalpur-Raoghat railway project.

A special purpose vehicle (SPV)-Chhattisgarh Dakshin Railway Pvt Ltd-was constituted through the agreement to build 142 km railway line at a cost of 2000 crore rupees.

The project aims at leading the economic development of tribal-dominated Bastar region.

Key highlights of the agreement

National Mines Development Corporation will have 43 percent stake in the SPV

IRCON, a Ministry of Railways company, will have 26 percent stake in the SPV.

SAIL will have 21 percent and Chhattisgarh Mines Development Corporation will have 10 percent stake in the SPV.

The work on the first phase of the project, which will connect Dalli-Rajhara with Raoghat, is already underway.

The second phase will have 32 medium-size and 172 small bridges, 12 stations and will require 876 hectares of land.